Reuters: Financial Services and Real Estate: China's shorter-term money rates rise on quarter-end factors

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China's shorter-term money rates rise on quarter-end factors Mar 28th 2012, 04:49 Tweet Share this Email Print Wed Mar 28, 2012 12:49am EDT * Longer term rates ease as impact seen limited * Benchmark 7-day repo rises 22.41 bps to 3.5311 pct By Chen Yixin and Kazunori Takada SHANGHAI, March 28 (Reuters) - China's shorter-term money rates rose on Wednesday on caution over liquidity conditions ahead of the quarter-end, although many traders expected any tightening to be limited. Banks traditionally stockpile cash near month-end on expectations of heavier customer withdrawals and to meet required regulatory thresholds. "Actually, money conditions are not bad for now," said a dealer at a Chinese bank in Shanghai. "We expect the money rates will fall back at the beginning of next month." The weighted-average seven-day bond repurchase rate rose to 3.5311 percent at midday compared with 3.3070 percent at the close on Tuesday, while the overnight repo rate, gained 9.07 bps to 2.6425 percent. But the 14-day repo rate fell to 3.9494 percent from 3.9610 percent. Interest rate swaps fell, with short-term one year IRS falling 3 bps to 3.1500 percent on ample market liquidity. Dealers expected longer term IRS to see-saw in the near term on uncertainties over the world's second biggest economy. Benchmark five-year IRS were flat at 3.32 percent. Current Prev close Change (pct) (bps) 7-day repo 3.5311 3.3070 +22.41 7-day SHIBOR 2.5223 3.3611 +16.12 Note: Repo rate is weighted average. ($1 = 6.3078 yuan) (Editing by Jonathan Hopfner) Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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